Are you receiving all the discounts on your auto insurance?
In Rhode Island, you have many choices for auto insurance, and there are an assortment of discounts available. Some discounts are offered by most insurance companies, while others are unique to one specific company. Below are the common auto insurance credits and discounts available in Rhode Island listed and explained:
Auto Insurance Discounts
The Account Credit can also be called a multi-policy discount or bundle credit. This credit is also available on other insurance policies like Home, Life, Boat, Renters, and Umbrella policies. This is a discount that the insurance company provides for having more than one policy with them.
Early Quote Discount
Obtaining insurance options at least two weeks before the effective date of your policy allows you to take advantage of this discount. The reasoning behind this credit is the idea that people that plan and get insurance options ahead of time are better insurance risks and have less claims.
If an insurance policy is paid in full, the insurance company saves the cost of mail and/or processing billing installments. With the Paid-in-Full Discount, the insurance company shares this savings with you.
EFT Payment Credit
If you choose to enroll in EFT (Electric Funds Transfer), you’ll receive an additional savings. Like the Paid in Full Discount, the insurance company saves bill processing costs that are shared with you. This is both a savings and a great convenience.
An option to receive documents electronically can save you money, however this discount does increase your responsibility. If you choose the Paperless Discount make sure you read and understand the terms and conditions of the agreement. You need to have an email account to enroll in this program. Sending you documents through the USPS costs money, and the saving of receiving documents electronically are passed on to you from the insurance company.
Insurance companies offer a discount for being insured with them for a certain amount of time. This is called a Loyalty Discount and is provided as an incentive or reward for being a faithful customer.
New Car Credit
The new car credit is applied to policies that have vehicles that are less than 3 years old. The rationale is that newer cars have new safety technology and lack wear and tear issues that could affect driving.
Good Student Credit
If you have a driver on your policy that is enrolled in High School or College full-time, and has a B or better average, you should be aware of the Good Student Credit. The insurance company will periodically ask for a copy of recent grades to continue this credit. Data has proven that students with a B or better average are involved in less automobile accidents, and that equates to savings for you and the insurance company.
Driver Training Discount
The Driver Training Discount is a reward to young drivers that have taken behind the wheel driver training to improve their driving skills and ability. The insurance company will require a copy of the drivers training certificate for the young driver. In most cases, this credit will be applied until the young driver is 21. The savings over the years far exceeds the cost of the driver training class.
Safe Driver Discount
If all drivers on your policy have an excellent driving record, you are rewarded by insurance companies with the Safe Driver Discount. The amount of a Safe Driver Discount depends on how long you have been insured with the company and how long all drivers have had an excellent driving record.
Defensive Driver Discount
The Defensive Driver Discount is offered to drivers 55 and older who complete an approved accident prevention or defensive driving course. The insurance company will require a copy of the certificate of completion and request an update every two to three years.
Auto Club Membership Discount
A discount is available for auto club membership. The insurance company will require that you provide your auto club membership number and will check to see that your membership is active every few years.
The multi-car discount is automatically added to a policy that has more than one vehicle.
Home Ownership Discount
The Home Ownership Discount is given to people who own the home where they reside. This discount is given to anyone who owns a home even if the home is insured by a different insurance company.
Student Away at School Credit
The Student Away at School Credit is available to people with a college student that is over 100 miles away at school without a car.
Safety Equipment Credits and Anti-Theft Discounts
The Safety Equipment Credits and Anti-Theft Discounts are applied using the VIN (Vehicle Identification Number). These credits are automatically included on the auto policy if these features are factory installed. However, you would need to provide proof of these devises if they have been installed after the car was manufactured. Additional discounts and credits are available for the following devices:
- Vehicle Alarm
- Air Bags
- Anti-Lock Brakes
- Traction Control
- Collision-Avoidance Systems
- Electronic Stability Control
- Automatic Seat Belts
- Blind-Spot Detection
Savings Will Vary
Discounts and Credits are applied to the entire policy, only one vehicle, or only one coverage, and for this reason savings will vary. For example, the Anti-Theft device credit only discounts the policy if you have comprehensive coverage for a specific vehicle. The Paid in Full Discount and Account Credits apply to the entire policy. In addition, the amount of savings may depend on how long you have been eligible and how long you have been insured with the same company.
The descriptions of the above credits, discounts, and savings are subject to specific insurance company policies, provisions, restrictions, guidelines, and limitations. The details can only be expressed in the policy itself. These discounts and credits and the availability vary by company and specific situations. Please note, this article was written to help you in general terms. Please consult an insurance professional to discuss your specific situation as it relates to the items discussed in this article.
David Brush, CIC
Apple Valley Insurance
Apple Valley Insurance helps people and businesses with insurance needs. We are a locally owned independent business located in Smithfield, RI. We serve all of Rhode Island and have many insurance options. Contact us today for a review of your personal or business insurance program.